The Tax Questions Blog

Archive for September, 2009

Question: Are compensatory damages taxable?

Answer: Depends what its compensation for:
If its for lost wages or lost profits, then yes, it's taxable.
If it's for personal physical injury or physical sickness, then no, it's not taxable.

The Only Good Legal Fees Are Tax Deductible Legal Fees

No one likes paying legal fees, but tax deductions make them a lot less painful: a 40% tax rate mea

Question: How do i file a restraining order on someone with no home address?

Me and my boyfriend are being harassesed by his Ex and it hads been goin on off and on for almost 3 yrs..she would dissappear for a while then all of a sudden start calling and leaving threatening voice mails... we need to file a restraining order on her but she does not have a set address...is there a way to file one on somebody who does not have a home and is most likely movin from hotel to hotel?

Answer: This all depends on what state you live in but in some states they let you file by publication which is were you publish it in the newspaper for 3-4 weeks and then you go to court.

Leach fired before court hearing

LUBBOCK, TEXAS — Texas Tech fired coach Mike Leach on Wednesday, two days after he was suspended by the school as it investigated his treatment of a player with a concussion.

Police File For Restraining Order Against 9/11 truther/ Anti-War Activist [Pomona CA]

Question: Is there a way to check the status of my filed taxes?

I filed from abroad. I will get no refund. However, I filed for 2007 after missing 2005 and 2006. I want to make sure the IRS has received my 2007 documents and see if there has been any problem because of my missing two years.

The "where's my refund" option on the IRS website doesn't seem to be applicable here.

Answer: that is a good idea to call IRS and make sure your return was received Call IRS at 1-800-829-1040, you should file your 2005 and 2006 returns ASAP.

2020 vision: Our team of futurologists peers into mists of time

Britain's first black prime minister is settling into Number 10, Sir Alexander McQueen has given King Charles a makeover and the City's carbon traders are coining it. Welcome to the future – but what other surprises are around the corner?

US Taxes for Overseas Filers

Question: What happens after sending in a 1040x amending dependents?

Tom filed his own taxes but was also used as a dependent by Steve.
So Steve got a letter from the IRS and is sending in the 1040x.
On Part II (where it asks for explanations) Steve is putting that "Tom does not qualify as his dependent since Steve did not supply more than half of his support".
Is Steve's explanation sufficient? Is the IRS going to ask for anything else? Or is everything going to be straightened out after this?

Thanks!

Answer: More than sufficient. Sufficient would be simply, "removed dependent."

But if you got a letter, did the IRS already re figure the taxes for you? You just need to write a check.

Closing deadline extended to Sept. 30 for Homebuyer Credit purchases

Raphael TulinoSpecial to the Sun Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, to close the deal, according to the Internal Revenue Service.

Question: What should be substitued for bonds with a diversified portfolio in a taxable account?

I am working with ShareBuilder, and currently allocating 25% of my taxable portfolio (non-taxable accounts are not an option in this scenario) to BND. However, I would much prefer to use tax exempt bonds, but those do not appear to be available through ShareBuilder. Am I missing something on the tax exempt bonds? If not, what type of ETF should I use to diversify in a taxable account?

Answer: I haven't seen an ETF for tax free bonds either. But, since you are invested in a Vanguard index fund, have you thought of opening an account at Vanguard to invest in tax exempt bond funds? ,, they also have a plan that would withdraw a certain amount from your checking or savings account each month to do dollar cost avg as you do with share builder. If that wouldn't work for you and you wanted to stay with a taxable dividend, look at an ETF screener for utility funds. (although they may be at or near highs now) There are several bond ETF's to choose from, depending on risk/reward you want if you need to remain with ETF's.

Smart investment tips to beat inflation

In an hour-long chat on Thursday, financial planning expert Sailesh Multani offered some valuable tips.

Wealth Management, Wealth Enhancement & Intelligent Indexing